The European Commission has opened a formal investigation into possible anticompetitive conduct by Omya in the supply of calcium carbonates to the paper industry. The Commission is investigating whether Omya, headquartered in Switzerland and the largest supplier of calcium carbonates in the European Economic Area, may have abused a dominant position through two practices: exclusive purchasing obligations requiring customers to buy all or most of their calcium carbonates from Omya, and exclusivity rebates giving customers financial incentives to source all or most of their supply from the company.
The Commission said it is concerned the practices may have limited the ability of other suppliers to compete for customers in the European paper industry. Calcium carbonates are used as fillers and coating pigments in paper and cardboard, reducing input costs and improving brightness, opacity and printability, and the Commission noted that competitive and affordable supplies matter because paper based packaging is increasingly used as an alternative to single use plastic packaging.
If proven, the practices may breach Article 102 of the Treaty on the Functioning of the European Union and Article 54 of the EEA Agreement, which prohibit abuse of a dominant position. The Commission said it will carry out the investigation as a matter of priority, that opening formal proceedings does not prejudge the outcome, and that there is no legal deadline for completing an antitrust investigation.
For the paper industry, the case is about contract structure, not spot prices: if the largest supplier’s customer base is locked in by exclusivity terms and rebates, rival mineral producers cannot contest mill contracts even at lower prices, and any remedy would reopen those contracts across the European packaging supply chain.